Lacerte calculates the 28% rate on capital gains according to the IRS form instructions. Per the instructions, the 28% rate will generate if an amount is present on Schedule D, Lines 18 or 19.
Line 18: If you checked Yes on Line 17, complete the 28% Rate Gain worksheet in these instructions if either of the following applies for 20xx:
- You reported in Part II of Form 8949, a section 1202 exclusion from the eligible gain on qualified small business stock. You reported in Part II of Form 8949, a collectible gain or (loss). A collectibles gain or (loss) is any long-term gain or deductible long-term loss from the sale or exchange of a collectible that is a capital asset.
Line 19: If you checked Yes on Line 17, complete the Unrecaptured Section 1250, Gain Worksheet if any of the following apply for 20xx:
- You sold, or otherwise disposed of section 1250 property (generally, real property that you depreciated) held more than 1 year.
- You received installment payments for section 1250 property held more than 1 year, for which you are reporting gains on the installment method.
- You received a Schedule K-1 from an estate or trust, partnership, or S corporation that shows unrecaptured section 1250 gain.
- You received a Form 1099-DIV or Form 2439 from a real estate investment trust or regulated investment company (including a mutual fund) that reported unrecaptured section 1250 gain.
- You reported a long-term capital gain from the sale or exchange of an interest in a partnership that owned section 1250 property.
If Lines 18 or 19 have amounts, then Line 20 will mark the box No and complete the Schedule D Tax Worksheet which goes through the various tax rates (15%, 25% and 28%).
For additional information, refer to the Schedule D Instructions (page D-12).